Deputy Commissioner of Income tax, Pune V. M/s. Vidya Sahakari Bank Ltd, Pune

ITA 399/PUN/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6437 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-05-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 16-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER . / ITA NO.399/PUN/2017 / ASSESSMENT YEAR : 2012-13 THE DY.COMMISSIONER OF INCOME TAX, CIRCLE 6, PUNE. . / APPELLANT V/S M/S. VIDYA SAHAKARI BANK LTD., S.NO.1355, PLOT NO.72, SHUKRWAR PETH, NATU BAUG, BHAJI RAO ROAD, PUNE 411030. PAN : AAAAV0260E. . / RESPONDENT ASSESSEE BY : SHRI SHARAD SHAH. REVENUE BY : SHRI RAJESH GAWALI. / ORDER PER VIKAS AWASTHY, JM : THIS APPEAL BY THE DEPARTMENT IS DIRECTED AGAINST THE OR DER OF COMMISSIONER OF INCOME TAX (APPEALS), PUNE - 5 DATED 10.10. 2016 FOR THE A.Y. 2012-13. THE SOLITARY ISSUE RAISED IN APPEAL BY THE DEPARTMENT IS AGAINST DELETING THE ADDITION OF INTEREST ON NON- PERFORMING ASSETS (NPAS). 2. SHRI SHARAD SHAH APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED THAT ASSESSEE IS A CO-OPERATIVE BANK. IN SCR UTINY ASSESSMENT PROCEEDINGS FOR THE IMPUGNED ASSESSMENT YEAR, A SSESSING OFFICER (AO) MADE ADDITION ON ACCOUNT OF ACCRUED INTEREST O N NPAS. / DATE OF HEARING : 07.05.2019 / DATE OF PRONOUNCEMENT: 08.05.2019. 2 ITA NO.399/PUN/2017 THE ASSESSEE CARRIED THE ISSUE IN APPEAL BEFORE CIT(A). TH E CIT(A) FOLLOWING THE ORDER OF HONBLE BOMBAY HIGH COURT IN THE CA SE OF CIT VS. NANDED DIST. CENTRAL CO-OPERATIVE BANK LTD., IN INCOME TAX APPEAL NO.57/2014 DECIDED ON 22.01.2015 DELETED THE ADDITIO N. THE LD.A.R. SUBMITTED THAT SIMILAR ADDITION WAS MADE BY THE AO IN A.Y. 2010-11. IN THE FIRST APPELLATE PROCEEDINGS, THE CIT(A) DELE TED THE ADDITION. THE DEPARTMENT CARRIED THE ISSUE IN APPEAL BEFO RE THE TRIBUNAL IN ITA NO.2032/PUN/2014. THE TRIBUNAL WHILE DECIDIN G BUNCH OF APPEALS WITH IDENTICAL ISSUE VIDE ORDER DATED 05.0 2.2016 UPHELD THE FINDINGS OF CIT(A) IN DELETING THE ADDITION ON ACCO UNT OF ACCRUED INTEREST ON NPAS AND DISMISSED THE APPEALS OF REVENUE. 3. ON THE OTHER HAND, SHRI RAJESH GAWALI REPRESENTING T HE DEPARTMENT VEHEMENTLY DEFENDED THE IMPUGNED ORDER AND PRAYED FOR REVERSING THE FINDINGS OF CIT(A). THE LD.D.R. TO BUTTRESS HIS SUBMISSIONS PLACED RELIANCE ON THE DECISION OF MUMBAI BENCH OF THE TRIBUNAL IN THE CASE OF GIC HOUSING FINANCE LTD., VS. ACIT REPORTED AS (2011) 45 SOT 318 / (2011) 140 TTJ 203. 4. WE HAVE HEARD THE SUBMISSIONS MADE BY THE REPRESEN TATIVES ON RIVAL SIDES AND PERUSED THE ORDERS OF AUTHORITIES BELOW. T HE REVENUE IN APPEAL HAS ASSAILED THE FINDINGS OF CIT(A) IN DELETING THE ADDITION OF ACCRUED INTEREST ON NPAS. WE FIND THAT IDENTICAL ISSUE HAD COME UP BEFORE THE TRIBUNAL IN ASSESSEES OWN CASE IN AN APPEAL BY THE REVENUE IN ITA NO.2032/PUN/2014 (SUPRA). THE CO-ORDINA TE BENCH OF TRIBUNAL WHILE DECIDING BUNCH OF APPEALS INCLUDING THAT OF T HE ASSESSEE WITH IDENTICAL ISSUE HELD THAT NO ADDITION IS WARR ANTED IN RESPECT OF ACCRUED INTEREST ON NPAS. THE TRIBUNAL DECID ED THE ISSUE 3 ITA NO.399/PUN/2017 IN FAVOUR OF ASSESSEE BY PLACING RELIANCE ON THE JUDGMENT S RENDERED BY HONBLE BOMBAY HIGH COURT IN THE CASE OF (1) DEOGIRI NAG ARI SAHAKARI BANK LTD., (INCOME TAX APPEAL NO.53 OF 2014), (2) PEO PLES CO-OPERATIVE BANK LTD. (INCOME TAX APPEAL NO.57 AND 58 O F 2014), (3) NANDED DISTRICT CENTRAL CO-OPERATIVE BANK LTD. (SUPRA) AN D (4) VASANTADADA NAGARI SAHAKARI BANK LTD (INCOME TAX APPE AL NO.68 OF 2014) REPORTED AS 379 ITR 24. WE FIND NO REASON TO TAK E A CONTRARY VIEW. THUS, IMPUGNED ORDER IS JUSTIFIED AND WARRANTS NO IN TERFERENCE. THE APPEAL OF REVENUE IS DISMISSED, ACCORDINGLY. 5. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED ON WEDNESDAY, THE 08 TH DAY OF MAY, 2019. SD/- SD/- (R.S. SYAL) (VIKA S AWASTHY ) VICE PRESIDENT JUDICIAL MEMB ER PUNE; DATED : 08 TH MAY, 2019. YAMINI !'#$%&%# / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. 4. 5 6. CIT(A)-5, PUNE. PR. CIT-4, PUNE. '#$ %%&',&', / DR, ITAT, A PUNE; $,-./ GUARD FILE. / BY ORDER // TRUE COPY // /01%2&3 / SR. PRIVATE SECRETARY &', / ITAT, PUNE.